Purpose

Here is a simple calculator to play with our expense/saving/investment ratios to get a feel for how (and how much) to allocate our money towards investments.

The calculator can be used in multiple ways:

• To see how our emergency fund could grow.
• To see how investments with different rates of return grow over time.

To focus only on investments' growth, the emergency funding parameters (percent allocated to it, size of emergency funding) and/or annual expenses can be set to zero.

Limitations

This calculator is simplistic. Its purpose is to show ballpark figures of the funds' growth, etc.: it uses after-tax amounts, and thus the impact of tax is not taken into account. Similarly, the calculator ignores any unplanned major expenses (e.g, home/car purchases, education, emergency healthcare expenses) that could stall the growth of investments.

Use the calculator to only get a general idea of how our emergency fund and investments can grow. As always, before making any financial decisions, consult your financial advisor to tailor your investment strategies for your specific lifestyle and situation.